computing
hardware
With worldwide computing needs expanding, companies that design and manufacture
personal and large-scale computers, peripheral devices, and data storage
systems have an increasing need to manage their complex revenue sharing
contracts. Everyday, computer hardware companies bundle operating systems,
utilities, office applications and interactive content onto their machines for
sale to end users. A variety of events including acceptance into inventory,
sale, and/or shipment of product can trigger financial events, such as royalty
payments. For large organizations financial partner obligations can total
hundreds of millions, and at times, in excess of a billion dollars in product
costs. Given these figures, it is crucial for companies to have a proven
solution to manage revenue sharing contracts and their associated financial
transactions.
software
Software generates annual worldwide revenues of approximately $200 billion and
much of this revenue stems from collaborative partnerships. Companies that
design, develop, market, and support application software used in personal
computers, servers, embedded systems, and mobile devices often bundle their
solutions with products from complementary vendors. This product bundling helps
create advantages to win new business. However, analyzing the return earned on
a single software bundle or group of bundles is a challenge when paying
royalties. Many software companies also depend on their hardware partners for
marketing and distribution channels. As software is shipped or downloaded, each
transaction is based on unique partnerships and deal terms that must be
tracked, such as contractual language, currencies, royalties, timing,
exclusivity, distribution channel, etc. This information must then be
translated into payments to partners who contributed to the total product
value. It is therefore clear that massive volumes of data that must be
collected stored and managed. A single knowledge center which automatically
receives data via integration with distribution systems can facilitate this
task. Additionally, those companies that have full visibility into their
partnership data and can serve their partners requirements, such as responding
to information requests or issuing timely and accurate payments, are most
likely to retain and grow these relationships.
electronics
semiconductors & components
Semiconductor and component companies continue to search for the next
breakthrough technology. They are developing cutting-edge equipment to allow
more features in each chip, to process more advanced materials (producing chips
that run faster, cooler, or using less energy); and to discover methods that
ultimately lower the cost of production. There is constant pressure to improve
upon yesterday's state of the art. That pressure extends to chip equipment
makers, foundries, design labs, distributors -- everyone connected to the
business of bringing chips from the minds of engineers into the high-tech gear
that runs cell phones, car airbags and PCs. Managing this innovation in a cost
effective and timely manner, can also be a great challenge. As these businesses
rely on growing supply chains, paying partners for their ingenuity has become
more complicated. Companies are now relying on software solutions to manage the
financial implications of their intellectual property contracts.
communications equipment
As demand for Internet and wireless bandwidth increases, communications
equipment development is expected to follow, especially to meet the needs of
large developing markets. Competition to develop markets such as China, remains
hot, and communications equipment makers understand that they must innovate and
collaborate, for survival. In this atmosphere, managing the financial aspects
of intellectual property exchange remains a significant challenge. Rigorous
accounting regulation and associated non-compliance penalties, such as with
Sarbanes-Oxley, and the complexities of managing large partner networks require
more than outdated systems to manage intellectual property partnerships.
Today's communications equipment vendors require a solution with deep
calculation and precise tracking functionality to ensure regulatory compliance
and provide financial analysis tools to remain competitive.
devices
Electronics companies are producing enabling devices to meet the growing needs
associated with the build out of Internet and mobile networks and a surge in
digital content for mass consumption. For example, mobile phones have evolved
to accommodate features like text messaging, digital imaging, MP3 and
peer-to-peer gaming. As our world becomes more digitized, devices, from
hand-held computers to HDTV, to support this evolution are getting smaller,
faster, and more feature-rich. To accommodate these innovations, companies rely
on a network of suppliers from which they must license proprietary pieces of
technology – and this intellectual property comes at a cost. As the devices and
distribution channels get more complex, those inventing the latest
functionality will demand more favorable deal terms. To manage new types of
contracts, adapt to market trends and secure innovations, electronic device
manufacturers and suppliers will require the back office flexibility to ensure
that they stay competitive in defining their intellectual property
partnerships, and retain the rights to use technology that their end customers
demand.
aerospace & defense
For companies that manufacture and/or distribute aerospace and defense products,
innovation is a key ingredient for market success. These companies often rely
on licensing specialized designs, mechanisms, and components to provide
themselves with the competitive advantage necessary to win large contracts. In
doing so, it becomes incumbent upon aerospace and defense companies to “settle
up” with those that facilitated their success. Utilizing a robust and
centralized royalty system to manage the financial reconciliation of licensed
intellectual property is one step in the right direction. As industry
consolidation continues (with $30 billion spent on mergers and acquisitions in
2002), the challenge of internal controls and royalty management increases,
which makes it crucial from an accounting and transparency perspective to
administer a centralized system for these licensing arrangements.
industrial materials & manufacturing
Companies that manufacture and/or distribute chemicals and other industrial
materials also rely on innovation and production at the lowest cost possible.
With pressures for top line growth and significant cost reduction, some large
companies have turned to mergers, joint ventures, and alliances. Under these
market conditions, intellectual property exchange has become more fluid and
complex, raising the need for reliable systems that can centralize and
accurately calculate monies due or owed by partners with whom these companies
have engaged in intellectual property transfers. A solution that can mitigate
the operational costs associated with managing these revenue sharing
arrangements can increase the bottom line, while providing increased financial
and deal transparency to stakeholders.
RSS is the first enterprise-wide software solution to provide a proven software
solution to manage royalty, rights and revenue sharing contracts for the
technology and industrial products markets. We continue to lead the market
through continual product development and industry expertise, enabling our
customers to support market-leading innovation. Several of the world's foremost
technology companies, such as IBM and Dell Computer, use Alliant Royalties to
manage their robust knowledge repository, royalty, rights and revenue sharing
calculations and financial reporting needs. Our strength has been proven in
proof of concept environments in which Alliant Royalties, with no
customer-specific configuration, has fulfilled over 90% of revenue management
requirements. This means greater savings over in house and legacy systems and
faster time to market.
The calculation, payout, accounting, and reporting of the money earned on any
single product can present significant challenges. Issues of territory, rates,
tiers, guarantees, and volumes, to name but a few, add further complexity. As a
result, companies have been clamoring for a flexible solution to meet this
challenge. REAL Software Systems has responded with the Alliant product family
to manage the critical royalty, rights and revenue sharing requirements of
Technology and Industrial Products companies.
To learn more about how RSS can meet specific needs, please e-mail
or call us.
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